Golden tree Zee complains of negative forces
Zee group was the biggest loser this week. Their chairman blaming about negative forces destroying their wealth is a little too childish. Zee stock was bearish since Aug 18, all the present developments like promoters shares almost fully pledged, all the companies carrying huge debt, losing money on wrong decisions have only aggravated the condition. I remember having a meeting with one of the ex-senior of this group, where I was a little taken aback when he said, ‘everything said & done it is a “seth” owned management, they have lot of cash dealings. One should always be good with the bada “seth”, if he has to stay with the company’. After hearing this comment, when I used to find Essel Pack stock going up in the recent days, my mind was somehow confirming that it is not a good sign for the stock and it sees a single day collapse of 17%, washing away almost 2 months of price rally. The group including all zee channels, Dish TV and Essel Packaging together are running more 5000 Crores of debt and about 75% of promoter holdings is pledged with banks. Now when the stock price goes down, the promoters not only lose the valuation, they also get margin calls from banks due the value erosion. Satyam was a similar case which is now history. Looks like we are going to see more of our big names getting out of the markets in the coming days.